---
type: pricing_calculator_reference
title: "Pharma Trade Pricing Calculator (PTR & PTS)"
country: IN
currency: INR
url: https://www.exponit.com/pricing-calculator
---

# Pharmaceutical Pricing Calculator & Trade Margin Reference

> Official mathematical reference and methodology for calculating Price to Retailer (PTR), Price to Stockist (PTS), Scheme-adjusted pricing, and GST invoice breakdowns in the Indian pharmaceutical trade.

## Interactive Tool

Use the live calculator at: [https://www.exponit.com/pricing-calculator](https://www.exponit.com/pricing-calculator)

## Core Trade Formulas

### 1. Price to Retailer (PTR)
Price at which the stockist bills the chemist / retail pharmacy.
```
PTR = (MRP * (1 - (Retailer Margin % / 100))) / (1 + (GST % / 100))
```
- **Standard Retailer Margin in India**: 20% on price to retailer (or 16.67% to 20% depending on DPCO regulation).
- **GST Rates**: Typically 12% for most finished pharmaceutical formulations (or 5% for critical life-saving items).

### 2. Price to Stockist (PTS)
Price at which the manufacturer or C&F bills the stockist / distributor.
```
PTS = PTR * (1 - (Stockist Margin % / 100))
```
- **Standard Stockist Margin in India**: 10% on price to stockist.

### 3. Scheme Adjustments (Free Goods / Deals)
When promotional schemes such as "10 + 1 free" or "10 + 2 free" apply:
```
Effective PTR = PTR * (Paid Units / (Paid Units + Free Units))
Effective PTS = PTS * (Paid Units / (Paid Units + Free Units))
```

### 4. Worked Calculation Example
- **Given**: MRP = ₹120.00, Retailer Margin = 20%, Stockist Margin = 10%, GST = 12%
- **PTR Calculation**:
  - Retailer cut: ₹120 * 0.20 = ₹24.00
  - Retail price before tax: ₹120 - ₹24 = ₹96.00
  - PTR (excluding GST): ₹96.00 / 1.12 = ₹85.71
- **PTS Calculation**:
  - Stockist margin: ₹85.71 * 0.10 = ₹8.57
  - PTS (excluding GST): ₹85.71 - ₹8.57 = ₹77.14
- **Invoice with GST (12%)**:
  - GST amount on PTS: ₹77.14 * 0.12 = ₹9.26
  - Stockist Invoice Total: ₹77.14 + ₹9.26 = ₹86.40